As Congress prepares for a landmark crypto week of legislation, which began on 14th July and is going to end on 18th July. U.S. Representative Maxine Waters (D-Calif) has voiced sharp opposition to two key bills—the CLARITY Act and the GENIUS Act. She warned they could open the floodgates to massive fraud and financial ruin for millions of American families.
In an opinion piece published Monday on MSNBC, Waters criticized the House’s decision to consider the bills, which she claimed pose major risks to consumer protection and financial regulation.
Lawmakers are expected to vote on the CLARITY Act on Wednesday, followed by the GENIUS Act on Thursday. If approved, the GENIUS Act could reach President Donald Trump’s desk by the end of the week. Advocates have hailed this as a defining moment for U.S. crypto policy.
Waters, however, sees a deeper issue tied to both bills: presidential conflict of interest. “These bills have a special, intentional wrinkle that makes them especially dangerous,” Waters wrote. According to her, they would legitimize and legalize unprecedented crypto corruption by the U.S. President.
According to Bloomberg estimates, crypto-related ventures now represent about $620 million of the Trump family’s financial portfolio. This fact has raised alarm among Democrats, who view the legislation as potentially serving personal interests.
Waters also blasted the bills for failing to empower regulations or adequately shield consumers. She argued that the CLARITY Act would handcuff the Securities and Exchange Commission (SEC), preventing it from proactively protecting people against fraud.
On the GENIUS Act, Waters remained equally critical. While it claims to regulate stablecoins by requiring full backing by U.S. dollars or liquid assets, Waters noted that the bill lacks funding provisions for regulatory agencies. She said that it offers weak consumer protections.
The CLARITY Act focuses on defining regulatory jurisdictions between the SEC and the Commodity Futures Trading Commission, mandating disclosure from crypto firms, and separating customers’ assets from company holdings.
With bipartisan support pushing the bills forward and the Crypto Week reaching a pivotal stage, Water’s warnings reflect broader tensions in Congress. There are active concerns over how and by whom the cryptocurrency industry should be regulated.
Also Read: Crypto Firms Ask House Lawmakers to Support CLARITY Act
